EX-12 7 ex12apco3q.htm COMPUTATION OF RATIOS ex12apco3q.htm
EXHIBIT 12
 
 
APPALACHIAN POWER COMPANY AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(in thousands except ratio data) 
 
       
Twelve 
  
Nine
  
       
Months 
  
Months
  
   
Year Ended December 31,
  
Ended
  
Ended
  
   
2003
  
2004
  
2005
  
2006
    
 2007
  
9/30/2008
  
9/30/2008
  
EARNINGS
                                        
Income Before Income Taxes
  
$
308,003
  
$
238,226
  
$
202,021
  
$
282,865
   $
 195,613
   $
 216,840
   $ 168,118  
Fixed Charges (as below)     123,721     110,735     118,365     151,874    
 178,067
     196,181     149,322  
Total Earnings
  
$
431,724
  
$
348,961
  
$
320,386
  
$
434,739
   $
373,680
   $ 413,021   $ 317,440  
                                             
FIXED CHARGES
                                            
Interest Expense
  
$
115,202
  
$
99,135
  
$
106,301
  
$
129,106
   $
165,405
   $ 182,291   $ 138,644  
Credit for Allowance for Borrowed Funds Used
   During Construction
     5,319     8,100     8,764     17,668    
 6,962
     8,190     6,403  
Estimated Interest Element in Lease Rentals     3,200     3,500     3,300     5,100    
 5,700
     5,700     4,275  
Total Fixed Charges
  
$
123,721
  
$
110,735
  
$
118,365
  
$
151,874
   $
 178,067
   $ 196,181   $ 149,322  
                                             
Ratio of Earnings to Fixed Charges
    
3.48
    
3.15
    
2.70
    
2.86
    
 2.09
     2.10     2.12